Mongolia Is Ready For The Next Genghis Knan

2007
Government of
Mongolia
MONGOLIA NEEDS
ASSESSMENT
2007 Mongolia Needs Assessment
Table of Contents
Abbreviations.................................................................................................................................. 3
Glossary of Terms........................................................................................................................... 3
Cover photo: “Camel driver, Bayan Gobi, Mongolia” Michelle Genther, 2004. ........................... 3
INTRODUCTION .......................................................................................................................... 4
ECONOMICS AND POVERTY.................................................................................................... 7
Privatization in Mongolia ........................................................................................................... 7
Consequences of Privatization.................................................................................................... 8
External Factors ........................................................................................................................ 10
Poverty: Urban versus Rural ..................................................................................................... 10
Gender Equality ........................................................................................................................ 13
MDG 1: Reduce Poverty and Hunger by One Half .................................................................. 14
Graphs and Tables: Economics and Poverty (A).................................................................. 15
HEALTH....................................................................................................................................... 17
Mongolia’s Healthcare System ................................................................................................. 17
Overall Health of Mongolians................................................................................................... 19
MDGs........................................................................................................................................ 20
Diseases and Illnesses ............................................................................................................... 21
Factors contributing to spread of disease.................................................................................. 23
Urban and Rural........................................................................................................................ 23
Summary of Issues.................................................................................................................... 24
Graphs and Tables: Health (B).............................................................................................. 25
ENVIRONMENT AND AGRICULTURE .................................................................................. 27
Mongolia’s Environment .......................................................................................................... 27
Animal Husbandry .................................................................................................................... 27
Help from the Bilateral and Multilateral Community............................................................... 28
MDG 7: Ensure Environmental Sustainability ......................................................................... 29
The Role of NGOs Regarding MDG 7 ..................................................................................... 32
Graphs and Tables: Environment and Agriculture (C) ......................................................... 33
CONCLUSION............................................................................................................................. 39
WORKS CITED ........................................................................................................................... 41
Government of Mongolia | 2
Abbreviations
ADB - Asian Development Bank

EPAP - Environmental Awareness Project
EU - European Union
FAO - Food and Agricultural Organization
GDP - Gross Domestic Product
HDI - Human Development Index
HIV/AIDS - Human Immunodeficiency Virus / Acquired Immunodeficiency
Syndrome
IFAD - International Fund for Agricultural Development
JICA - Japan International Cooperation Agency
MDG - Millennium Development Goals
MOH - Ministry of Health
MOSTEC - Ministry of Science, Technology, Education, and Culture
NGO - Nongovernmental organization
SFP - Sustainable Livelihoods Project
STD/STI - Sexually Transmitted Disease/Sexually Transmitted Infection
TB - Tuberculosis
UNESCO - United Nations Science and Cultural Organization
UNICEF - United Nations Children’s fund
UNDP - United Nations Development Program
USAID - United States Agency for International Development
VTS - Vocational Training School
WHO - World health Organization
Glossary of Terms
aimag province
bag sub-district
dzud a severe winter episode with a lot of snow posing a risk to livestock
gher traditional Mongolian tent dwelling
negdel former collective farm
soum district
Cover photo: “Camel driver, Bayan Gobi, Mongolia” Michelle Genther, 2004.
Government of Mongolia | Abbreviations 3

INTRODUCTION
Bordered by Russia to the North and China to the South, Mongolia is seated in an area of Asia
that has historically been dominated by socialist ideology. Mongolia followed a socialist,
centrally-planned economy and single party government until the fall of the Soviet Union. In
1990-1991, Mongolia began a radical transition to democracy and market economics that is still
continuing today. With only 2.5 million inhabitants, Mongolia's sparsely populated territory
lends itself to agriculture and mining. Our most valuable assets include gold, copper, and coal
deposits and livestock used for raw materials for cashmere, wool, meat, and leather products
(World Bank, CAS, Attachment 4). Despite achieving a high degree of market liberalization and
the privatization of public goods, property and institutions, Mongolia's limited growth and
multiple structural impediments have resulted in limited human development. One third of
Mongolia's population is now living below the poverty line and inequality of income and the
quality of life exists both between urban and rural populations and within the urban population of
the capital, Ulaanbaatar.
Historical Overview
Ten years after declaring independence from China with the support of Russia in 1911, a
communist regime was established in Mongolia in 1921. Beginning in the 1940s, Mongolia
pursued a centralized, planned economy that fixed prices and tariffs (Nyamsuren, 224-25). By
the 1960s, all property was owned by the state or cooperatives (EGSPRS, 2). Under this
communist system, Mongolia enjoyed relatively high standards of living (compared to other
Soviet bloc countries) thanks to highly subsidized basic necessities, broad social services
coverage, and high, stable employment levels. These measures allowed citizens to live well and
enjoy a largely egalitarian and poverty- free society despite the fact that Gross Domestic Product
(GDP) per capita levels only reached $471 in 1989 (Nixson and Walters). All of this was
possible given that our economy was to an immense degree dependent upon financial support
and trade with Soviet Union. Imports from the USSR were at 58 percent of the GDP and external
financing 30 percent before the 1990s (Nyamsuren, 226).
Government of Mongolia | INTRODUCTION 4

This high level of dependency on the USSR proved to be a devastating factor in the dramatic
changes that occurred in 1990-1992. The fall of the Soviet Union in 1991 and the withdrawal of
financial support and a stable market resulted in dramatic declines in GDP (20 percent from 1990
to 1992). Savings also dropped from 35 percent of GDP to 26 percent, imports dropped by over
half, and inflation reached its highest point in 1992 at 325.5 percent. Large loans from the Soviet
Union suddenly ended and unemployment soared (EGSPRS, 1). The Soviet Union had also been
a major customer and in 1990, exports fell by 40 percent and did not cease to decline until 1993
(Nyamsuren, 226-227).
In order to deal with these severe losses and momentous circumstances, Mongolia began a series
of reforms aimed at transitioning to a democratic society with free, multiparty elections, a new
constitution, and the initiation of a market economy (Nyamsuren, 225). Of greatest importance
were the liberalization of state-controlled prices and tariffs, the privatization of public
enterprises, the liberalization of trade on the international market, a new, floated exchange rate
system, and the adoption of conservative monetary and fiscal policies designed to halt our rapid
rate of inflation and reduce the government deficit (EGSPRS, 1). These reforms fundamentally
altered the structure of society and the changes affected all areas of life for Mongolians.
After implementing rapid economic reforms--also known as "shock therapy"--during the first ten
years of transition, Mongolia is now pursuing development strategies that are more supportive of
the poor and focused on eliminating poverty. Since our economy before 1990 had been
maintained primarily by the support and partnership of the Soviet Union, it would clearly be
neither self-sufficient nor competitive in the global market. However, the effects of massive
privatization of businesses, housing, pasture land, and livestock previously owned by the
government for public use have caused a dramatic increase in inequality within Mongolian
society. The loss of the system subsidizing basic necessities, which had provided fairly equal
access during the central planning period, also contributed to the social inequality witnessed in
the decade following the implementation of these policies (Nixson and Walters).
External factors have also made our launch towards a new economic system start off on shaky
footing. The collapse of CMEA (the economic cooperation and trade organization of the east-

bloc countries), harsh winters and droughts in 2000 and 2001, and the end of the system of
textile quotas for importing countries like the US in 2005 all presented challenges to our new,
evolving economy.
Poverty is currently the most pressing issue Mongolia faces as we continue along a path of
economic liberalization and increased participation in the global market. While income figures
are important, Mongolia recognizes that a more accurate assessment of our population's needs
takes into account issues of environmental factors, health, and education. A multi-directional
approach to development is therefore both logical and absolutely crucial.
At the core of our development plan is a human resources approach. We strongly believe that in
order to achieve the goals we have set we must focus on building capacity at the community
level and improving access to basic social services in addition to macroeconomic restructuring.
We hope this report will prove useful for donor organizations to gauge Mongolia’s historical
progress and current development needs as we strive to improve the quality of life experienced
by every Mongolian citizen and strengthen our ties with other nations and members of the
international community.

ECONOMICS AND POVERTY

Privatization in Mongolia
For the 70 years prior to Mongolia’s economic and political reform, its adherence to a socialist
structure proved successful in the achievement of high levels of human development. Over this
period, the people of Mongolia enjoyed improvements in gender equality, education, access to
health care, and social security. From 1960 to 1990, life expectancy in Mongolia jumped from
46.7 years to 63.7 years, and adult literacy had risen to 97.8 percent. 98 percent of pregnant
women received prenatal care, malnutrition was rare, and nearly all citizens had access to
healthcare (6, HDR).
Mongolia was able to achieve such impressive standards of human development as a

consequence of our close ties to the Soviet Union and the subsidized imports the USSR provided.
Naturally, when the Soviet Union collapsed in 1991, all aid, subsidies, and support immediately
ended, and Mongolia’s leaders found themselves required to decide on a new plan for the future
of our citizens.
Since the beginning of Mongolia's transition, the principal aim of reforms has been privatization.
Mongolia began this process by adopting a voucher system, in which citizens were granted
vouchers that could be used to buy shares in government and cooperative businesses. The system
began in October of 1991, when three red vouchers of 1000 tugriks were awarded to citizens
born before May 31st of that year (Nixson and Walters). These vouchers could be used to buy
shares or could be traded on the secondary markets. A second series of blue vouchers worth
7,000 tugriks was awarded, one per citizen, from October of 1991 to July of 1992. These were
intended for bidding for shares in joint stock enterprises that were created from formerly state-
owned enterprises. This system of vouchers led to the privatization of an estimated 4500 entities
between 1991 and 1994, and 942 from 1996 to 2000 (Nixson and Walters).
In the agricultural sector, collective farms, called negdels, were also privatized using this system
of vouchers. Although in the 1980s Mongolia had introduced a system of limited private
ownership of livestock, the majority of herds were run by state cooperatives in which there was a
Government of Mongolia | ECONOMICS AND POVERTY 7

low degree of economic inequality between members. The voucher system was applied first to
herds and herd-related assets like wells and shelters, and later to larger assets and the
cooperatives themselves (Nixson and Walters).
A third important area in which privatization occurred was Mongolia’s housing sector. All
residential apartments and buildings were owned by the state prior to 1991. Citizens would apply
to the Housing Commission and would be put on a waiting list until a vacancy appeared. In 1996
it was decided that when these apartments and buildings were privatized, it was decided that the
tenants living in them at the time would become owners without any charge. The change in the
governing party in 1996 resulted in an expedited and more transparent privatization process,
deregulation of the Mongolian economy and the objective of attracting more foreign investment
(Nixson and Walters).
By 2003, over seventy- five percent of Mongolia's economy had been transferred to private
ownership, compared the 1990 starting-point of 4 percent (USAID/Mongolia, 23). Some of the
largest privatization moves in Mongolia occurred in 2003 when, with assistance from USAID,
the Trade and Development Bank and Agricultural Bank were sold. USAID estimates that the
combined result of these transactions provided 20 billion USD to the Mongolian treasury
(USAID/Mongolia, 4).
Consequences of Privatization
Given the abruptness of the fall of our largest benefactor and the accelerated pace of the
privatization in Mongolia, it may come as little surprise that the transition has been turbulent and
the outcomes of this new path have not been exclusively positive. One of the consequences of
the privatization of businesses and government entities is restructuring and budget tightening. In
order to become competitive in the global market, businesses must reduce their employee
headcount. Frequently, reducing the size and scope of the government is considered absolutely
necessary, and these two policies were pursued in earnest in the first decade of transition in
Mongolia. The resulting unemployment was and is a crucial element in the fate of the
population. Of the entire population of working age in Mongolia in urban areas 27.3-38.8 percent
is unemployed (Government of Mongolia, 12).

Those who kept their jobs also felt the effects of new, profit-oriented objectives; many
businesses reduced or did away with services to employees such as child care, educational
provisions, health care, and occasionally even housing. These services represented “non-market
elements of a social wage” that the new, reduced state did not provide and which reduced
workers’ standard of living and plunged some into the new category of “poor” (Nixson and
Walters).
The level of unemployment is, in addition to household income sources, the most important
factor for determining poverty and unemployment (Dore and Nagpal). Those most likely to be
poor in Mongolia are single parent households with many children, households with less than
100 heads of livestock (dependent on household structure and size), the unemployed, those
lacking basic education, and specific vulnerable groups such as the elderly, disabled, street
children and orphan children (EGSPRS, 11).
Livestock privatization had varied results and was not extensively documented by the members
of each cooperative. However, data from 1992 indicates that “5 percent of households had herds
with more than 200 animals, whereas at the bottom end of the distribution, 42 percent of
households had herds containing less than 31 animals.” (Nixson and Walters). This distribution
has changed, but large disparities remain; estimates from 2000 indicates that “63 percent of
households had less than 100 animals, 22 percent had herds of 100-200 animals and 12 percent
had herds between 200 and 500 animals. These families with fewer than 100 animals were at
greater disadvantage when, in the winters of 2000 and 2001, Mongolia experienced dzuds, or
extremely harsh winter storms. These years and others have meant that many of these small
herders lost their only source of livelihood (Nixson and Walters).
Not all Mongolians benefited from the privatization of apartments and among those who did,
disparities exist regarding the extent of gains. Those living in the gher district at the time of
privatization did not gain anything as they did not reside in apartment buildings. And amongst
those who did become owners of the apartments they inhabited appeared an imbalance in the
value of property gained. Apartments located in the central district of Ulaanbaatar became more

desirable and expensive, and were largely obtained by wealthy Mongolians and foreigners.
Occasionally, situations arose in which only one of two families living in the same apartment
was granted ownership. Due to the increase in the cost of basic service charges such as gas,
electricity, water, and heating, the fact that apartment-dwelling families no longer paid rent
mattered little. Table (Monthly expenditure on household services, Nixson and Walters).
External Factors
Despite our progress towards democracy and a market economy, several external factors over the
past 17 years have made the goal of reducing Mongolia's high poverty rate much more difficult.
Growth has been unsteady (see graph A1).
The East Asian financial crisis of 1997-1998, fluctuations of market prices, and the end of
international agreements favoring Mongolia within the global market (World Bank, CAS, 3).
Because 90 percent of Mongolia’s exports consist of a few raw materials (minerals like gold and
copper, animal skins and wool, and knitted items), the economy is highly vulnerable to market
price fluctuations (HDR, 12).
January 1, 2005 marked the end of the decades-long WTO Agreement on Textiles and Clothing,
which established quotas on the quantity of textiles that could be purchased from a particular
country. This meant that the US and other large consumers could purchase all textiles from
countries that pay workers less and produce goods more cheaply like China. Mongolia’s textile
companies are in critical need of modernization, and the industry suffers from electricity rates
three times higher than those of the residential sector and these issues prevent it from becoming
competitive in the world market (Brooks, 2004).
Poverty: Urban versus Rural

Between 1995 and 2000, the percentage of those living in poverty did not increase significantly
but the “depth of poverty” increased as did inequality (Government of Mongolia, 12). Despite
the promise of employment and the proximity to social services that living near urban centers
suggests, “a substantial proportion of urban population lies within the extremely poor category”
according to a World Bank Participatory Living Standards Assessment from 2000 (Government

of Mongolia, 12).
During Mongolia’s socialist period, citizens’ ability to migrate within the country was limited.
This was changed in Mongolia’s new constitution, which permitted free movement. Coupled
with this legal change was a loss of government investment in agriculture and an overall decline
in social services, and from this new set of social conditions an enormous shift in population
distribution developed (HDR, 42). Two opposing trends are distinguishable over the first ten
years after Mongolia’s reform.
The first trend was a wave of migration from urban centers to the countryside, as thousands of
workers employed in large state industries, construction, and public administration lost their jobs
and left the cities to work in agriculture. The period of underdevelopment that resulted from
Mongolia’s structural changes increased temporarily the importance of the agricultural sector
(HDR, 42). The number of herders increased by 136 percent from 1990 to 1993, but the total
output of the agricultural sector dropped to subsistence level (HDR, 43).
However, the opportunity that herding represented for many small herders rapidly evaporated
after the winters of 1999-2000 and 2000-2001, when Mongolia experienced dzuds—severe
winter storm conditions—and herders lost 7 million animals, equivalent to around 22 percent of
the country’s total livestock (Dore and Nagpal). This sparked a reversal of migration patterns, as
families who had lost their livelihoods turned (or returned) to the city to search for employment.
Ulaanbaatar saw a 5 percent increase in population in 1999 (HDR, 43).
Despite the differing trends, Ulaanbaatar is still the destination of the majority of Mongolians.
Between 1990 and 2000 the population of Ulaanbaatar increased by over 27 percent (HDR, 43).
While moving to the capital will not guarantee a better standard of living than staying in the
countryside, there is a significant difference in access to basic services and employment
opportunities (see graph A2). As of 2006, 43 percent of Mongolia’s rural population lived below
the official poverty line, compared to 30 percent of the urban population (Dore and Nagpal).
The Rural Population

Of immense import to explaining the pronounced difference between poverty levels of these two
populations are the ecological and geological realities Mongolia faces. The vastness of our
country and harsh weather conditions matters much more to those living off of agriculture and
away from electricity grids or sanitation services. It is difficult and expensive to deliver social
services to remote provinces, called aimags, located in Mongolia’s six geographical regions:
"high mountains, taiga forest, forest steppe (grasslands), desert steppe, and desert regions"
(HDR, 20). The majority of these are not linked to the capital by paved roads or the existing
roads are in need of maintenance. Fuel prices in rural areas are currently 10-20 percent higher
than urban centers, further limiting the rural population's access to education, health care,
employment, information and safe drinking water (HDR, 21). Rural herders are often isolated
and unaware of market terms of trade for exports like cashmere and wool (HDR, Box 3.1, p 39).
In addition to the isolation of the rural population, Mongolia experiences harsh weather
conditions that damage property, hinder food production, and damage people's eyesight. 20-30
hazardous climatic phenomena occur every year, one third of which can be classified as natural
disasters, including heavy snowstorms, drought, heavy rain, strong winds, floods, and dust
storms. Snowstorms may last weeks and droughts may last for several years, greatly interfering
with food production cycles and imperiling livestock herds (HDR, 20).
The Urban Population

Urban populations are much more likely to have access to central heating, sanitation services,
and clean drinking water, but not all of the urban population actually enjoys these benefits.
Within the category of urban residents two sub-categories exist: those living in apartment
buildings in the city, and those living in the semi-permanent gher district at the outskirts of the
city. One quarter of urban gher dwellers do not have waste disposal facilities. In addition
Mongolians living in urban gher districts frequently experience water shortages and are forced to
drink from unsafe water sources that may be polluted. Water consumption between apartment
and gher dwellers differs substantially; the former consumes 240- 450 liters per day, the latter, 8
to 10 liters per day. In 2003, the majority of urban poor lacked central heating. (HDR, 31). Roads
in gher districts are generally left unpaved and become soft and muddy once the ground thaws
(HDR, 32).

Gender Equality
Mongolia's Constitution provides equal rights to men and women, and we, the Government of
Mongolia, have signed several international conventions on gender equality and rights. In
addition, in 2001, the National Council for Gender Equality was created “to monitor and support
the implementation of policy and to promote women and gender equality” (15, Government of
Mongolia). In 1996, the National Program for the Advancement of Women (NPAW) was
established to address Mongolia’s needs in gender equality. However, gender disparities still
remain “in all dimensions of poverty, and specifically; access to economic opportunity, capacity
to access public services, vulnerability to economic and domestic violence, and political
empowerment” (15, Government of Mongolia). Currently, while 50.5 percent of the population
is female, women represent only 11.8 percent of Mongolian parliament members and 16.9
percent of heads of agencies and organizations (Embassy). In addition, 54.3 percent of
Mongolia’s unemployed are women.
The roots of some of these issues can be directly traced to policies Mongolia adopted in order to
transition to a market economy. The Pension law of 1991 provided women with four or more
children the option of receiving state pensions early, providing a financial incentive to them to
stop working sooner than men. Because privatized assets are registered as belonging to the head
of household (frequently male), women are not able to control these assets or use them for their
own business endeavors (16, Government of Mongolia).
Programs and Support

In order to address Mongolia’s high rates of poverty, the Mongolian Government, with donor
countries, UN affiliated agencies, and other international organizations, authorized the National
Poverty Alleviation Program (NPAP), in 1994, implemented in 2000. Over 13,000 small- scale
programs have been implemented as a cooperative effort to improve living standards in remote
aimags. Many of these deal with providing education or training for disabled children and adults,
creating employment in rural communities, improving basic medical and educational services,
and generally addressing the needs of vulnerable groups. These projects are to a large degree
initiated by local communities and thus are representative of their true needs (EGSPRS, 21-22).

The Law on the Facilitation of Employment takes up Mongolia’s high unemployment rates. This
law allocates a minimum amount (no less than 0.3 percent) of funds from the annual budget to
the Employment Support Fund. The Fund then transfers this money to employment offices in
Ulaanbaatar and the aimags, for vocational training programs and employer support (EGSPRS,
22).
The Mongolian government adopted a new goal of supporting regional development in order to
reduce the high concentration of population in Ulaanbaatar, ensure a greater degree of economic
sustainability in other urban centers, and reduce the development disparities between cities and
rural areas. It is hoped that economic development based on the natural assets of different
regions, such as mineral deposits, will help improve the quality of life by allowing populations to
enjoy health, cultural, and social services and employment opportunities in remote regions of the
country (HDR, 45). The Millennium Road project addresses similar needs. This project, adopted
in 2001, is to build a road running East-West, as well as five North-South roads, with the goal of
expanding both domestic and international trade (HDR, 46).
MDG 1: Reduce Poverty and Hunger by One Half

The UNDP’s first Millennium Development Goal is to halve, between 1990 and 2015, the
proportion of people whose income is below the national poverty line. Given the economy’s
moderate growth and the numerous structural impediments Mongolia faces, achievement of this
goal is unlikely (see table A3). Harsh weather conditions, volatile market prices and an
undiversified export sector, h i g h unemployment, and difficulty providing social services to
populations in remote regions of the country have all made it particularly difficult to reduce
Mongolia’s high poverty rate (MDG Report, 3). In order to mitigate these problems, Mongolia
must focus on improving growth rates, diversifying the economy and encouraging diversification
among small herders, improving regional development as a part of a strategy to reduce the urban-
rural gap and improving the poor’s access to food (MDG Report, 4).

Graphs and Tables: Economics and Poverty (A)

A1.
Mongolia’s rocky transition: GDP growth rates: 1989-2002
Source: HDR, p. 11.
A2.
Mongolia: Urban-Rural Differences, 2002
Source: World Bank CAS, 6, 2004

A3.
Mongolia’s Progress: Reducing Poverty by 2015
40
36
35 35
30
Poverty Headcount
25
20
18
15
10
5 Actual
MDG Target
0
1990 2000 2015
Source: MDG Report, 2003, 3.

HEALTH
Mongolia’s sparse population settlements, immense land size and population concentration in a
few large cities place it in a unique situation. The impacts of these factors are perhaps most
clearly seen in the health sector. At present, the health sector is made of up approximately “17
specialized hospitals and centers, 4 regional diagnostic and treatment centers, 12 districts and 21
aimag general hospitals, 323 soum hospitals, 18 veterinary posts, 233 family group practices, and
536 private hospitals and 57 drug supply companies and pharmacies” (Embassy). The majority
of health services are situated in the areas with most of Mongolia’s population, which include the
capital city Ulaanbaatar, leaving rural inhabitants with limited access to the country’s health care
system. In 1997, Mongolia had one of the highest ratios in Asia of physicians and hospital beds
to population, 25 physicians and 78 hospital beds per 10,000 people (Ebright, 1509). At last
count this number was at 27.7 physicians and 75.7 hospital beds per 10,000 people (Embassy).
Approximately 57 percent of Mongolians live in Ulaanbaatar and 43 percent reside in rural areas
(Embassy). Making Mongolia’s healthcare system more accessible to rural dwellers is one of the
biggest concerns in the health sector today. In addition, Mongolia is on the brink of an HIV
epidemic (UNICEF) and is continuing to battle the spread of four major chronic infections:
hepatitis B and C, brucellosis, tuberculosis, and sexually transmitted diseases (Ebright, 1509).
Steps to reverse Mongolia’s high maternal mortality rate must also be taken.
Mongolia’s Healthcare System

The transition that Mongolia underwent in 1990 also had a drastic effect on its healthcare system.
Before the transition, Mongolia followed the Soviet model of economic development, in which
healthcare services were entirely financed and provided by the government (Bayarsaikhan, 28).
Under this system, all Mongolians had free access to healthcare. The financing was a
combination of local and central government funds, as well as aid from the Soviet Union. This
aid accounted for 30 percent of the country’s GDP (Bayarsaikhan, 28), until the Union’s collapse
ended this source of funding. As a result, the overall government budget was reduced and the
healthcare allocation drastically decreased.
Mongolia’s healthcare system has undergone many changes since 1990. The universal free
healthcare coverage of the decades prior to the 1990s had to be disintegrated due to the suddenly
limited funds. The government could no longer fund quality, accessible, and full- ranging health
services, which was made difficult by high inflation and depreciation of the national currency
(Bayarsaikhan, 30). Policy began to focus on how to generate funds to the health sector without
making individuals pay excessively and also how to aid the most vulnerable of Mongolians, the
low- income and the poor.
The solution was social health care. In 1993, the Mongolian Parliament enacted the Mongolian
Citizen’s Law on Health Insurance, which provided compulsorily insurance to all “public and
private sector employees and low- income and vulnerable population groups” (Bayarsaikhan, 31).
Under the low- income and vulnerable population heading were children under 16, students,
pensioners, mothers with infants, military service individuals, herders and individuals provided
with social assistance, accounting for almost 70 percent of the total population (Bayarsaikhan,
32). The Law also made voluntary insurance available to unemployed individuals of working age
with the ability to work. The Law was implemented on January 1, 1994 and covered nearly 95
percent of the population within the first two years (Bayarsaikhan, 31). Funding for the health
insurance came from a variety of sources: government, private and individual user fees and co-
payments. As of data available at the most recent date, approximately 14,000 employers and
545,000 individuals pay insurance fees (Embassy).
Over the next few years, however, problems with maintaining the universality of the system
emerged. First of all, because health insurance was a new concept for Mongolia, there were
challenges with registering and collecting premiums from self-employed nomads (Bayarsaikhan,
32). Then, due to the low population density and “high dependency on imported pharmaceutical,
medical equipment and supplies,” the healthcare costs increased (Bayarsaikhan, 34). A large
portion of the total national health budget is taken up by non-service-related costs, which include
heating, electricity and building maintenance (Bayarsaikhan, 34). These services are even more
important in Mongolia because of its extremely cold winter months.
Another issue developed along with private sector growth in the country. The number of private
practices and institutions has been rapidly rising in Mongolia since the introduction of social
health care. Although there is now more variety of health care open to Mongolians, the number
of them has contributed to the overall health expenditure increase (Bayarsaikhan, 36). This is an

issue because all of these private practices and institutions count on the national health insurance
fund for their operating costs. Dividing up the fund among all of the institutions makes less
funding available to individual facilities.
The next challenge facing the health care system was its ability to provide quality and diversity
of services to the insured. The system largely worked for those who were hospitalized.
Therefore, unless insured members were hospitalized, they did not see many benefits
(Bayarsaikhan, 38). A report showed that in 2001 approximately 62 percent of the contributing
members did not receive any benefits (Bayarsaikhan, 39). Students and nomads have been
gradually excluded from government subsidies and a large number of them dropped out entirely
from the insurance system, causing the health insurance coverage rate to decline from nearly 96
percent in 1996 to 78 percent in 2003 (Bayarsaikhan, 39). In addition, limited funding has
blocked the expansion of benefit packages and consistent training programs for health insurance
workers (Bayarsaikhan, 40).
Adding to the aforementioned concerns with the health care system are those related to poverty.
There has been increased marginalization of certain groups of the population, increased internal
migration and number of homeless, as well as poor living conditions (Embassy). In the
discussion of differences between urban and rural populations, it is essential to look at the
unequal health status and access to services that has emerged in the last decade and a half
(Embassy). There is routinely better healthcare access in urban areas than in rural.
Overall Health of Mongolians

Mongolians are relatively healthier than their counterparts in other low-income countries
(Embassy). Throughout the last decade, there have been many improvements in infant mortality,
average life expectancy, and death rates. Since the transition and until 1992, average life
expectancy fell from 63.7 to 62.8 years, and then increased again to 63.5 years by 2002 (HDR,
8). Between 1992 and 2002, infant mortality rates decreased from 63.5 to 30.4 per thousand live
births (Embassy). According to the Human Development Report for Mongolia, the decline in
infant mortality was from 64.4 deaths per thousand live births in 1990, to 48.0 in 1994 and 29.6
in 2002 (8). The maternal mortality rate reached its lowest amount in 2004 at 98 deaths per
100,000 live births (MOH, 12) (See graph, B1). The availability of physicians and healthcare
facilities to administer healthy deliveries is high; with 98 percent of deliveries in urban areas and
92 percent in rural areas taking place in healthcare facilities and 98 percent of deliveries were
conducted by a gynecologist, a physician, or a professional midwife (HDR, 8).
Despite these improvements, maternal and child mortality rates are still relatively high. The
Human Development Report stated that the maternal mortality rate in Mongolia has been
fluctuating, with numbers decreasing from 1.5 to 1.2 per 1,000 live births between 1985 and
1990, and then increasing to 2.4 during the first few years of the transition, and finally falling to
1.4 in 1997 and to 1.2 by 2002 (8). WHO has identified several causes of the high maternal
mortality rates. The biggest cause of maternal mortality, with 68 percent, is due to difficulties
encountered during puerperium, which is the six week period immediately following giving
birth. The next cause of death, accounting for 45.5 percent, is extragenital disease.
Complications encountered during delivery claim the next largest figure of lives with 25 percent.
The cause of death with the lowest percentage, 22.7 percent, is due to complications during
pregnancy. Better access in all of Mongolia to prenatal care is required to decrease the
prevalence of vulnerability during pregnancy.
MDGs
The Mongolian government is committed to attaining the Millennium Development Goals. Of
the eight goals, the ones that most pertain to the health sector are: “Goal 4: Reduce under- five
mortality by two/thirds between 1990 and 2015, Goal 5: Reduce by three-quarters, between 1990
and 2015, the maternal mortality ratio, and Goal 6: Halt and reverse spread of HIV/AIDS and
tuberculosis” (World Bank, 5). According to evaluations by the World Bank in 2004, Mongolia
was well on track and is likely to attain Goal 4, with under- five mortality rates being 87.5 in
1995 and 42.4 in 1998. As stated above, the maternal mortality rate is not decreasing by as much
as needed and the decline from 200 in 1992 to 109 in 2003 is not sufficient to fully meet the
required three-quarter decline in rate by 2015. Due to Mongolia’s unique status regarding the
low prevalence of HIV/AIDS, achieving Goal 6 will depend on initiating policies and programs
to prevent the rate of infection from increasing. According to World Bank data, TB rates
increased from 70 to 100 per 100,000 people in the last decade. More attention needs to be
brought to battling TB.

Diseases and Illnesses

(See table, B2)
Mongolia is currently experiencing an “epidemiological transition,” which is identified by a
reduction in communicable diseases and a rise in non-communicable diseases as the main causes
of death (Embassy). WHO identified these as cancer, cardiovascular diseases, injuries and
“mental health problems.” However, several kinds of sexually transmitted diseases are still a
factor throughout Mongolia. Syphilis has increased from 3.7 to 6.7 per 10,000 people from 1991
and 2002, while gonorrhea made an even greater jump from 9.3 to 19.6 during the same time
period (HDR, 9).
Of perhaps greater concern is the possible epidemic of HIV/AIDS. By 2002, there were only
two detected cases of HIV infection (Ebright, 1509). Between 2005 and 2006, twenty people
were diagnosed with HIV, indicating a high-risk environment for an HIV epidemic (UNICEF).
The spread of HIV to the general population will most likely occur through sexual transmission,
with the main indicators of vulnerability being increasing sexually transmitted infection rates,
which now account for 47.3 percent of all communicable diseases, low knowledge among
Mongolians of misconceptions and preventions of HIV/AIDS, increasing high risk behavior, and
low condom use among the general population and the vulnerable groups (UNICEF). The
Human Development Report also added over 50 percent of the population being under 23 years
of age, increased number of sex workers and decreasing age of sex workers, rise in migration and
population movements between countries, a rise in drug use, as well as the rapid increase of HIV
infection in neighboring Russia and China, to the list of risk factors (9).
Recent developments have been made in the fight against HIV/AIDS in Mongolia. Mongolia’s
Ministry of Health proposed a budget in 2005 to the GFTAM (Global Fund to fight HIV/AIDS,
Tuberculosis and Malaria) to help enact programs specifically for HIV/AIDS (WHO). The
budget was approved for US $4.2 million and will run from 2006 to 2011. The goals of the
programs are “(1) to reduce HIV transmission among vulnerable populations through reduction
of high-risk behaviors by scaling up existing targeted prevention interventions; (2) to establish
and scale up prevention [programs] at workplaces vulnerable to HIV/AIDS/STI (mining,
construction, transportation, trade, entertainment companies and uniformed services); (3) to

strengthen the health system for improved prevention, care and support [programs] regarding
HIV/ AIDS/ STI, including the link between HIV and TB; and (4) to scale up HIV/ AIDS
advocacy, human rights protection and de-stigmatization” (WHO).
Another communicable disease of concern is tuberculosis, TB. Between 1991 and 2002, the rate
of TB occurrence doubled, from 7.4 per 10,000 population to 14.9 (HDR, 9). Mongolia is on the
World Health Organization’s list of seven Asia-Pacific countries with high numbers of TB
(HDR, 9). An entire building of Mongolia’s major university hospital, the National Research
Center for Infectious Diseases, is reserved specifically for the treatment of patients with TB
(Ebright, 1509-1510).
The prevalence of viral hepatitis has also seen an increase. It is the most commonly reported
infection in Mongolia, even though incidence has decreased from 14,278 cases in 1990 to 5,249
cases in 1999 (Ebright, 1510). The majority of hepatitis cases, 80 percent, are those of hepatitis
A, and hepatitis B has been falling due to a national immunization program begun in 1991 and a
program to eliminate the reuse of phlebotomy and injection needles (Ebright, 1510-1511).
Despite the reduction in rates, chronic frequency of hepatitis is still one of the main health
obstacles for Mongolia. This is due in part to the lack of funding that would make available
better treatment (Ebright, 1511).
Mongolia’s immunization program introduced in 1991, has been quite successful in some areas,
but lacking in others. The program provides vaccinations against TB, polio, hepatitis B,
diphtheria, pertussis, tetanus, and measles (Ebright, 1513). In 2002, WHO declared Mongolia
free of polio (Ebright 1513). Despite the universality of the immunization program, vaccination
against influenza is not as common and depends largely on outside funding (Ebright 1513). This
is especially worrisome in the winter months, when influenza rates are greatest (HDR, 10).
Immunization programs would not work against Mongolia’s leading causes of death.
Cardiovascular diseases and cancers were responsible for over 58 percent of all deaths in 2002,
while acute respiratory infections and diarrhea were the leading killers among infants (HDR, 8).
Among the general population, respiratory illnesses such as pneumonia are most common during

the winter, while infectious diarrhea occurs mostly in the summer seasons and is a major health
problem in Ulaanbaatar (Ebright, 1512).
Factors contributing to spread of disease

Some of the same factors that contribute to the spread of disease in other low- income countries
are also present in Mongolia. Most diseases are spread in areas of close-contact, such as urban
centers. The poorest areas with the least access to available health facilities are also most
vulnerable.
Perhaps the most influential factor in the spread of disease is access to safe drinking water.
According to a Living Standards Measurement Survey, LSMS, indicated in the HDR, nearly half
of all Mongolians were using water from unsafe sources. These sources included unprotected
wells, rivers, run-off and snow (HDR, 9). Access to sanitized water is as much a problem in
urban areas as it is in the rural. Approximately a quarter of the urban poor receive their water
from piped sources, compared to half of the more affluent (HDR, 9). Programs specifically
addressing water treatment are needed.
Urban and Rural

There are obvious disparities between urban and rural areas. In regards to the availability of
physicians, the ratio of physicians to population was one physician per 209 people and in Orkhon
it was one to 314, while in the rural aimags, Arkhangai, Bayankhongor, Zavkhan, Khovsgoi, Uvs
and Tov, the numbers ranged to over 700 (HDR, 2003). A 1998 Reproductive Health Survey
found that aimag and soum hospitals do not have sufficient laboratory facilities to make
diagnoses, have a low drug supply, and do not have iron and folic acid tablets to distribute to
pregnant women (HDR, 9), which is essential to the overall health of both the mother and the
baby.
In addition, safe drinking water is much less attainable in rural areas as a whole as it is in urban
centers. Despite international aid given to water sanitation projects in the last few years, rural
areas are still not given the same priority as urban for funds (WHO). More attention must be
given to the introduction of better access to water in rural Mongolia in order for all Mongolians
to have the same rights.

Summary of Issues
Much progress has been made in the last decade and a half in many areas of the health sector in
Mongolia. The new healthcare system provides services to all interested Mongolians. There has
been reduction in under-five mortality rates, as well as maternal mortality rates. Communicable
diseases have been greatly decreasing in the country thanks to an efficient immunization
program. There has been a lot of focus on preventing HIV rates from reaching epidemic numbers.
A significant amount must still be done to ensure the further improved health of Mongolians.
Although, HIV/AIDS prevalence has been low, it has also been increasing every year since the
turn of the century. The rates of TB, viral hepatitis and STD infections have been fluctuating,
with the rate of STDs currently increasing. More priority must also be placed on ensuring that
expectant mothers receive the necessary care required for a health pregnancy. Most importantly,
there must be an equal level of access to quality healthcare services and clean, drinkable water
throughout all of Mongolia to help alleviate all health concerns.

Graphs and Tables: Health (B)

B1.
Maternal Mortality per 100,000 population
Source: Ministry of Health, 2004, 12

B2.
Major infectious diseases by year, Mongolia
Disease Year 1990
1995 1996 1997 1998 1999
Tuberculosis 1,664 2,543 3,104 2,723 2,806 3,221
V. hepatitis 14,278 7,877 8,198 9,394 8,042 5,249
Brucellosis ------- 850 1,158 1,122 1,308 1,482
Syphilis 705 718 810 1,291 1,329 1,093
Gonorrhea 2,234 3,308 3,274 2,934 3,486 2,207
Salmonellosis 866 360 323 256 239 243
Shigellosis 1,930 1,589 2,294 2,146 1,261 1,383
Measles 296 558 123 4 8 10
Mumps 240 255 436 736 1,287 426
Meningococcal 776 2,781 881 533 303 242
meningitis
Chickenpox 810 401 386 253 375 297
Source: Ebright, 2003, 1510

ENVIRONMENT AND AGRICULTURE

Mongolia’s Environment
Since Mongolia’s transition in 1990, the country’s environmental and agricultural sectors have
seen dramatic changes. Mongolia is a large country roughly one half the size of India and is one
the least populated areas in the world with 1.7 persons per square mile. Mongolia is also a
landlocked country, popular for its pristine environment, extremely temperate climates, and
immaculate grasslands for arid grazing which make up approximately 80 percent of the land
(Dore & Nagpal).
Animal Husbandry
Historically, Mongolia has been a country populated by nomadic herders and with an economy
that thrived on agriculture and animal husbandry. Since the transition in 1990 there has been a
large growth in the number of herding families. In 1990 there was an estimated 148,000 herders,
and by 1999 there was nearly a threefold increase in that number, with an estimated 418.000
Mongolian herders (“Implications,” 8).
Starting in the early 1990s, a shift was being made from nomadic herding to stationary herding in
and around the urban areas of Ulaanbaatar, Erdenet, Darkhan, and Choibalsan. Reduced
livestock mobility created by privatization of the land has made it difficult for the remaining
nomadic herders to navigate between public and private land. This has encouraged many herders
to herd on the land near cities where there is better access to veterinary services for the animals
and allows them to stay put and use the winter pastures from the former negdels, but has also had
major effects on land degradation and potential desertification (“Implications,” 9). The increase
in the number of privatized herd owners, who own large quantities of the countries livestock, is
also making it harder for the smaller, nomadic herders to earn a profit off their herds. As well,
the introduction of taxes upon the herders has created additional distress upon herder incomes.
Even with the large migration of Mongolians to the urban centers, livestock husbandry still plays
an important role in the economy, employment and export revenues of Mongolia. In 2000,
agriculture accounted for almost one third of the total GDP; however, over the last seven years
there has been a steady decrease in revenue from agriculture. The figures in reference to table C1
Government of Mongolia | ENVIRONMENT AND AGRICULTURE 27
show that the agricultural industry supported a consistent 31 to 38 percent of total GDP from
1992-2000, but in 2004 the GDP provided by agriculture has shrunk down to just 25 percent of
the total. This is mainly caused by a large influx of workers into the industrial and service
industries (EGSPRS, 116).
In 1990, in the initial phase of the transition, livestock was transferred from state and cooperative
ownership directly to private owners. With the change of livestock ownership the state policy
had to be changed as well. In 1990, 68.2 percent of total livestock was in state and cooperative
ownership; and in 2003 97.2 percent of it was in private ownership. Although the state policy
regarding livestock husbandry has changed since then, livestock husbandry still remains a key
mean of the country’s economy and form of revenue for many Mongolians (“Macroeconomic”).
Help from the Bilateral and Multilateral Community

Several donors such as the ADB, IFAD, World Bank, USAID, the EU, FAO, and IDRC have
prepared many new and or follow up projects in the extensive livestock sector. Many of the cases
are second generation projects, and reflect the accumulated experience of the agency concerned
about extensive livestock development. The focus of most of these projects is on building local
community-based institutions for natural resource management (“Sustainable”). We view these
project initiatives as an essential first step.
Organizations like the ADB have created technical assistance packages that will provide training
for co-operatives and facilitate more sustainable pasture management. The World Banks
Sustainable Livelihoods Project (SFP) is broken up into three components, pastoral risk
management, microfinance outreach, and a community investment fund. A project like the SFP
will prove especially beneficial, because the money will be distributed widely into different
needed sectors. The project includes elements such as micro-finance for herders, including
development of specially designed micro-financing products for herders, and testing new
approaches to pastoral insurance; setting up herder organizations, with revolving herder
community risk funds; hay and fodder development and management; and capacity building for
project implementation (“Sustainable”).

Valuable projects like the USAID funded Gobi Regional Economic Growth Initiative, which is
managed by Mercy Corps, has created a four year project that hopes to increase productivity by
orienting herders towards market production (through genetic improvement of cashmere goats
and use of supplementary feed); improving veterinary services; and establishing revolving fodder
funds; improving management of water sources and pasture through reducing herd numbers and
reducing pressure on degraded pastures; improving water supply; increasing productivity and
profitability of enterprises through an increase in credit to herders, co-operatives and businesses;
position herding enterprises to maximize profitability by management training; and stimulating
the creation of new businesses (“Sustainable”).
MDG 7: Ensure Environmental Sustainability

Target 9: Integrate the principles of sustainable development into country policies and programs
and reverse the loss of environmental resources.
Land Degradation
A very serious threat to the livelihood of Mongolia’s agricultural sector and ecological integrity
is the fact that the pastureland is rapidly undergoing degradation, though the extent to which this
is occurring is debated. Table C2 shows that in the late 1990’s that 122.2 million hectare acres
(ha) of land had been degraded in some way, and that 24 percent of that land has been
moderately or severely damaged (“Implications,” 8). “There are a range of causes: overgrazing
in areas close to markets and water points due to the failure to manage and maintain deep-water
wells constructed in the socialist era; mining operations, especially for gold, coupled with the
lack of land rehabilitation and infestations of grasshoppers and Brandt's Voles. There is a risk
that degraded pasturelands leads to desertification (MDG Report, 24).”
The effects of natural disasters, droughts, dzud, forest fires and parasitic infestations have also
been made worse by a growing over-concentration on grazing pastures, especially since the
numbers of herders and livestock have been increasing and migrating ability for the herders has
decreased since 1990. (EGSPRS, 19). Table C3 is a reference to the types and population of
livestock in Mongolia in 1990 and 2000.

In many rapidly growing cities green and open spaces are becoming a rarity. In Ulaanbaatar,
construction on previously forested land or on green areas in the center of the city is leading to a
loss of valuable open spaces. Officials and citizens claim that more overgrazing by animals
owned by herders who have moved to urban areas to be closer to markets has caused severe
degradation around cities. In addition, solid waste dumping is also degrading land within town
limits (Dore & Nagpal).
Air Pollution
The increasing number of people moving form the countryside to the cities has created a
population explosion in and around Ulaanbaatar. With the area around the capital now
containing more than 60 percent of the population, there have been increasing effects on both the
environment and to the agricultural sector. Air pollution has been a serious problem in
Ulaanbaatar for many years and is now becoming a major health concern in provincial centers as
well. Emissions from combined heat and power plants, heat-only boilers, industry and mines,
and area sources such as household stoves, refuse burning, road dust and ash, and sandstorms
present major health risks. Automobile emissions are also becoming major contributors as the
numbers of personal vehicles in the capital grows. Perhaps the single largest pollutant of concern
is particulate matter (Dore & Nagpal). Graphs C4-C7 help to show how Ulaanbaatar has
experienced major increases in pollutants such as sulfur dioxide (SO2 ) and nitrogen oxide (NO2 ),
during the winter season when the air is harsh and becomes difficult to breathe. Ulaanbaatar also
suffers from a high exposure to particular matter, e.g. dust, during the winter. The graphs clearly
show that pollutants in Ulaanbaatar exceed WHOs recommended maximum levels for pollution
within a city during certain periods (“Country,” 8-9).
Another issue dealing with air pollution is the acceptable concentrations of SO2 , dust, and carbon
monoxide as a result of incomplete combustion in household stoves and poor ventilation in
traditional dwellings. In Ulaanbaatar, 75 thousand households living in gher areas, use an
estimated 200 thousand tons of coal and 160 thousand cubic meters of wood for fire per year.
Household stoves release ash and waste into the atmosphere which pollutes the air and
potentially adds to unsafe air levels for the rest of the population (EGSPRS, 124). The ADB has
implemented projects to improve household stoves, to help reverse this issue. The project has

been successful in Ulaanbaatar, but the government could use greater support, to start similar
projects in secondary cities.
Commercial enterprises, including small meat and animal hide processing units, placer mines,
and wood and construction factories, also release wastes without much treatment or oversight.
Small town environmental authorities have limited financial or technical capacity and often lack
the necessary manpower to assess environmental indicators and changes (Dore & Nagpal).
Energy Efficiency
Tied in with air pollution is the problem of inefficient energy. A combination of inefficient
energy production using low-grade coal, inefficient heating systems, lack of insulation, and lack
of incentives to conserve energy use, are the main reasons for poor energy efficiency (MDG
Report, 24). This creates greater costs for both households and businesses. Another issue is that
the cost of environmental compliance has not become a major concern by the management of
state owned power corporations.
Deforestation
Mongolia has also been facing a downward trend in the percentages of forested areas that are
currently remaining. The 2000 United Nations MDG report recorded Mongolia as having 15
percent of forested land during the Soviet era, and only eight percent of forested land in 2000.
Graphs C8 and C9 show the percentages of forested land as of 2000 and the targeted goal by
2015 (Goldammer).
One reason that Mongolia’s forested areas have been shrinking is due to destruction caused by
forest fires. The most common reason for the starting of forest fires is human carelessness. Since
1990 forest fires have been much larger than in the previous decade (reference to graphs C10 and
C11). From 1980-1989 there were on average 1,096,022 hectare acres (ha) of burned forest/land
per year, compared to 4,771,297 ha of burned forest/land per year from 1990-1999.
(Goldammer)
There has also been a rapid increase in illegal harvesting of wood, with an estimated
consumption of 2.5 million ha of wood annually consumed as firewood or other household-use

wood. This is an area that has not been given much recognition by NGOs, but is a place where
we feel that their methods and resources could be used to re-educate local populations on the
importance of respecting and taking care of the forest.
The Role of NGOs Regarding MDG 7

The role of NGOs has had a wide impact on limiting many environmental problems. Successful
projects such as the Dutch/UNDP funded Environmental Awareness Project (EPAP), which was
actually a multitude of small pilot projects (most costing less than $5,000 each) which taught
local populations easily and efficiently different ways of living and working that are low- impact
on the environment. As of 2000, there were approximately 1000 NGOs operating in Mongolia,
100 of which were connected to environmental issues (“Implications,” 35). Because Mongolia is
such a vast and sparsely populated country, NGOs can be effective in focusing on the MDGs, by
being able to participate in smaller and more diverse projects and programs.

Graphs and Tables: Environment and Agriculture (C)
C1.
Source: EGSPRS, 116
C2.
Source: “Implications,” 8
C3.
Livestock in Mongolia 1990-2000
('000s)
1990 2000
Livestock
1. Camel 537 323
2. Horse 2,262 2,661
3. Cattle 2,849 3,028
4. Sheep 15,083 13,206
5. Goats 5,126 10,077
Total Livestock 25,587 29,295
Source: “Implications,” 9

C4.
City Population/ Suspended Sulfur Nitrogen
million Particles levels/ Dioxide Dioxide
mg m3 levels/ mg levels/ mg
m3 m3
World Health 90 50 50
Organization
Recommended Max.
Levels
Source: “Country,” 8-9
C5.
C6. “Country,” 8-9

C7.

C8.
1990 200 2015
0
Percentage of land area 9a 8b 9d
covered by forest
Land area protected to 7b 13 b 30d
maintain biological
diversity (%)
Carbon dioxide 4.08 4.19 5.61d
emissions (ton/person) c c
a Ministry of Nature and
the Environment. 2002.
b Protected Areas of
Mongolia. 2000.
cSustainable
Development
Programme 21, 1999.
dMDG Target
Source: MDG Report, 24
C9.

35
30 30
25
20
15
13
10
9
8
7
5 4,08
4,19
0
1990 2000 2015
Percentage of land area covered by forest
Land area protected to maintain biological

diversity
Carbon dioxide emissions (ton/person)
Source: MDG Report, 24
C10.
Table 3-27 Wildfire statistics of Mongolia, 1981-1989
Year Total No. of Total Area Area of Forest Area of Other
Fires on Forest Burned on Forest, Burned Wooded Land &
Other Wooded Other Wooded Other Land
Land & Other Land, & Other Burned
Land Land
No. ha ha ha
1982 109 1 100 000 156 300 943 700
1983 95 245 400 87 400 158 000
1984 116 513 900 156 200 357 700
1985 99 1 896 700 3 400 1 893 300
1986 204 3 187 000 30 600 3 156 400
1987 233 1 228 000 143 300 1 084 700
1988 142 243 000 2 300 240 700
1989 192 1 281 000 51 000 1 230 000
Average 160 1 096 022 82 400 1 060 000
Source: Goldammer
C11.

Table 3-28 Wildfire statistics of Mongolia, 1990-1999.

Year Total No. of Total Area Burned Area of Forest Area of Other
Fires on Forest, on Forest, Other Burned Wooded Land and
Other Wooded Wooded Land, & Other Land Burned
Land, & Other Other Land
Land
No. ha ha ha
1990 129 2 577 000 55 000 2 522 000
1991 101 6 099 000 639 000 6 035 100
1992 171 1 541 000 390 700 1 123 300
1993 63 2 763 000 202 000 2 561 000
1994 126 3 600 000 165 000 3 435 000
1995 120 168 570 34 200 134 370
1996 417 10 194 400 2 363 600 7 830 800
1997 239 12 440 000 2 710 000 9 730 000
1998 132 5 200 000 700 000 4 500 000
1999 76 3 130 000 30 000 3 100 000
Average 157 4 771 297 731 950 4 0971 570
Source: Goldammer

CONCLUSION
Mongolia recognizes and emphasizes to our partners in development that the transition to
capitalism is a lengthy process and will require patience and struggle through difficult periods.
We do not expect instantaneous changes and concede that there are many obstacles that need to
be dealt with along the way, as seen in the preceding assessment of needs.
However, we are optimistic about our current progress and the prospects of a future in which
those currently living below the poverty line are supported through multiple channels, enabling
them to increase their income and quality of life. We are fully committed to joining hands with
donor nations and organizations from around the world to improve standards of living, engage in
new trade partnerships, create new educational and career opportunities for our citizens, and
ensure a strong, steady, and sustainable development plan.
We have seen that the health sector has already met many challenges, such as providing
Mongolians with a health insurance system, reducing child mortality rates, and greatly reducing
many communicable diseases. We also recognize that much still needs to be done to ensure a
healthy and happy population. However, we hope that with the help of our donor partners we
will be able to satisfy some of the other needs of the health sector, including, stabilizing and
further reducing maternal mortality rates to meet Millennium Development Goal standards,
providing more quality healthcare, as well as ensuring that all Mongolian residents, both urban
and rural, have equal access to health services and clean, drinkable water.
Maintaining Mongolia’s pristine environment is desirable for cultural and ecological reasons, as
well as necessary in order to ensure the economic sustainability of our agricultural production
and public health. T he problems we face of land degradation, energy deficiency, air pollution
and deforestation must be dealt simultaneously as we pursue greater economic growth. We
appreciate all that has been done to set Mongolia on its way to attaining a healthy environment
and viable agriculture and hope that we can continue to rely on donor agencies for guidance and
support.
Government of Mongolia | CONCLUSION 39

We feel that, although much remains of our journey, we provide a positive example of stability
during transition for North Korea and Central Asia. In addition, Mongolia can be counted on to
increase our influence in demonstrating our commitment to nuclear non-proliferation and
maintaining regional security. We express our most sincere gratitude and appreciation of the
continuing support of the donor organizations involved with Mongolia's transition to a stable
democracy and a market economy.
Government of Mongolia | CONCLUSION 40

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ADB - Asian Development Bank

Government of Mongolia | Abbreviations 3

Government of Mongolia | INTRODUCTION 4

Government of Mongolia | INTRODUCTION 5

Government of Mongolia | INTRODUCTION 6

ECONOMICS AND POVERTY

Mongolia was able to achieve such impressive standards of human development as a

Government of Mongolia | ECONOMICS AND POVERTY 7

Government of Mongolia | ECONOMICS AND POVERTY 8

Government of Mongolia | ECONOMICS AND POVERTY 9

Poverty: Urban versus Rural

Government of Mongolia | ECONOMICS AND POVERTY 10

The Rural Population

Government of Mongolia | ECONOMICS AND POVERTY 11

The Urban Population

Government of Mongolia | ECONOMICS AND POVERTY 12

Programs and Support

Government of Mongolia | ECONOMICS AND POVERTY 13

MDG 1: Reduce Poverty and Hunger by One Half

Government of Mongolia | ECONOMICS AND POVERTY 14

Graphs and Tables: Economics and Poverty (A)

Source: HDR, p. 11.

Source: World Bank CAS, 6, 2004

Government of Mongolia | ECONOMICS AND POVERTY 15

Source: MDG Report, 2003, 3.

Government of Mongolia | ECONOMICS AND POVERTY 16

Mongolia’s Healthcare System

Government of Mongolia | ECONOMICS AND POVERTY 18

Overall Health of Mongolians

Government of Mongolia | ECONOMICS AND POVERTY 20

Diseases and Illnesses

Government of Mongolia | ECONOMICS AND POVERTY 21

Government of Mongolia | ECONOMICS AND POVERTY 22

Factors contributing to spread of disease

Urban and Rural

Government of Mongolia | ECONOMICS AND POVERTY 23

Government of Mongolia | ECONOMICS AND POVERTY 24

Graphs and Tables: Health (B)

Source: Ministry of Health, 2004, 12

Government of Mongolia | ECONOMICS AND POVERTY 25

Government of Mongolia | ECONOMICS AND POVERTY 26

ENVIRONMENT AND AGRICULTURE

Help from the Bilateral and Multilateral Community

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 28

MDG 7: Ensure Environmental Sustainability

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 29

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 30

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 31

The Role of NGOs Regarding MDG 7

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 32

Graphs and Tables: Environment and Agriculture (C)

Source: EGSPRS, 116

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 33

C6. “Country,” 8-9

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 34

Source: “Country,” 8-9

Source: “Country,” 8-9

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 35

Source: MDG Report, 24

Government of Mongolia | ENVIRONMENT AND AGRICULTURE 36

Percentage of land area covered by forest

Land area protected to maintain biological